12:38 PM EDT, 04/01/2024 (MT Newswires) -- US equity indexes fell after midday Monday as government bond yields surged after a closely monitored gauge indicated expansion in manufacturing activity.

The S&P 500 fell 0.3% to 5,238.7, hovering close to its record high of 5,261.1. The Nasdaq Composite fell less than 1% to 16,369.9. The Dow Jones Industrial Average at 39,553.8 was down 0.6% but still close to the record 40,000 mark. Communications services and energy were among the top gainers intraday. Real estate and health care led the decliners.

The US Treasury 10-year yield surged 13.3 basis points to 4.33%, and the two-year rate rose to 4.71%, a jump of 8.9 basis points.

In economic news, the Institute for Supply Management's US manufacturing index rose to 50.3 in March from 47.8 in February, compared with expectations for 48.4 in a survey compiled by Bloomberg. A reading above 50 indicates expansion. The S&P Global US manufacturing index for March was revised to 51.9 from the flash 52.5, compared with expectations for no revision in a survey compiled by Bloomberg.

US construction spending fell 0.3% in February, compared with a 0.7% increase expected in a survey compiled by Bloomberg and following a 0.2% decrease in January.

In company news, 3M ( MMM ) said Monday its multi-billion-dollar settlement to address water pollution claims by public suppliers across the US received final court approval on Friday and completed its spinoff of the Solventum (SOLV) healthcare business. Shares of 3M ( MMM ) jumped 4.8%, among the top gainers on the Dow and the S&P 500 by Monday afternoon.

West Texas Intermediate crude oil advanced 1.4% to $84.30 a barrel.